MCA completes consultation for norms on revival of sick consultation

The Corporate Affairs Ministry has completed public consultation for rules pertaining to revival and rehabilitation of sick firms under the companies law, Parliament was informed today.

Press Trust of India

NEW DELHI: Corporate Affairs Ministry of India, Ministry of Corporate Affairs India, Ministry of Corporate Affairs News As per the draft rules, in case a sick company does not submit a draft scheme of revival and rehabilitation, the Tribunal may direct the interim administrator to take over the management of that entity.

The Corporate Affairs Ministry has completed public consultation for rules pertaining to revival and rehabilitation of sick firms under the companies law, Parliament was informed on May 6, 2016.

“The rules related to revival and rehabilitation of sick companies have been examined in the ministry and public consultations has also been completed,” Corporate Affairs Minister Arun Jaitley said in a written reply to Lok Sabha.

He further said, “Notification of these rules is dependent on establishment of National Company Law Tribunal), & NCLAT (National Company Law Appellate Tribunal) and commencement of the sick industrial (Special Provision) Repeal Act, 2003.”

NCLT, proposed under the Companies Act, 2013, would replace the Company Law Board.

The comments were sought with respect to revival and rehabilitation of sick companies related provisions under the Act on the draft rules till March 14.
As per the draft rules, in case a sick company does not submit a draft scheme of revival and rehabilitation, the Tribunal may direct the interim administrator to take over the management of that entity.

In a separate reply, Jaitley said that government has granted Rs 71.89 crore to the Indian Institute of Corporate Affairs (IICA) since 2008-09 for running the organisation and expenditure towards various training programmes by its schools and centres. However, the institute has utilised Rs 68.39 crore.

IICA, which comes under the ministry, launched a certificate programme for corporate social responsibility (CSR) in 2014. The programme was aimed at preparing professionals for CSR through an nine months programme.

In the first batch 169 participants, of which 60 were corporate sponsored, were registered and completed the course. This included 33 officers of PSUs.
In the second course running since February this year, 130 participants have been registered.

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